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Agri-Chem's contract with Enerco specified a maximum of 90,000 cu.ft. X 10 3 per day for its complexes. However, curtailments are projected to be based

Agri-Chem's contract with Enerco specified a maximum of 90,000 cu.ft. X 103 per day for its complexes. However, curtailments are projected to be based on actual usage rather than contractual maximums. The current natural gas usage is 85,680 cu. ft. x 103 per day. Enerco projects curtailments in the range of 20 to 40 percent.


Question:

Which of Agri-Chem's complexes would be least affected by a gas curtailment? (Using Excel Solver).

TABLE 1 Contribution to profit and overhead

Product

$/Ton

Ammonia

80

Ammonium phosphate

120

Ammonium nitrate

140

Urea

140

Hydrofluoric acid

90

Chlorine

70

Caustic soda

60

Vinyl chloride monomer

90

TABLE 2 Operational data

Product

Capacity (tons/day)

Production Rate (% of capacity

Natural Gas Consumption

(1,000 cu. ft./ton)

Ammonia

1,500

80

8.0

Ammonium phosphate

600

90

10.0

Ammonium nitrate

700

70

12.0

Urea

200

80

12.0

Hydrofluoric acid

800

70

7.0

Chlorine

1,500

80

18.0

Caustic soda

1,600

80

20.0

Vinyl chloride monomer

1,400

60

14.0

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